News from Brazil

Business & Economy

In Brazil on January 14, 2011 at 10:24 am

ECONOMY

Brazil offers $1 billion in reverse currency swaps as it buys dollars in the futures market for the first time in 21 months to protect the real from the global currency war (Bloomberg).

President Dilma Rousseff has agreed to raise the minimum wage to 543 reais ($326) per month from the 540 reais that took effect Jan. 1 to compensate for faster inflation last year (Bloomberg).

Spearheaded by record investment in the petroleum and natural gas industry, Brazil’s job market continues to grow at a breakneck pace. Billion dollar investments by the government and private companies have created a positive landscape for job seekers, with no sign of abating (The Rio Times).

Brazil’s economy created 2.55 milllion formal jobs in 2010 (Bloomberg).

AGRI-PECU

A leveraged buyout of Sara Lee Corp could pave the way for Brazilian beef processor JBS SA to buy the U.S. company’s meat division, analysts at Bank of America Merrill Lynch said (Reuters).

Mitsui & Co. plans to buy 44.2 percent of Brazilian grain broker Multigrain SA from CHS Inc. of the U.S. for 40 billion yen ($482 million) (Bloomberg).

AVIATION

Air travel demand in Brazil increased a record 23.5 percent last year with more passengers booking flights as employment and wages continued to rise in a thriving economy (Reuters).

Brazil’s airport authority needs about two years to prepare for an initial share offering that could improve air travel ahead of the 2014 World Cup and 2016 Olympics (Bloomberg).

TAP Portugal will launch in June 2011 non-stop flights to Porto Alegre, capital of Rio Grande do Sul, the state with the fourth largest GDP in Brazil and a population exceeding 10 million inhabitants.

Embraer confirmed the sale of ten EMBRAER 190s to CDB Leasing Co., Ltd. (CLC), of China. The jets will be operated by China Southern, the country’s largest airline, and the third in the world. The aircraft will be used to develop new markets, and the first delivery is expected for the second half of 2011 (Embraer).

Brazil’s civil aviation regulator could reduce the number of flights operated by airline TAM after a string of canceled and delayed flights (Reuters).

Singapore Airlines will launch flights to Sao Paulo, Brazil, starting from March 28 (Xinhua).

TWITTER & LINKEDIN

You can also follow Brazil Weekly on Twitter at brazilweekly.

Be very welcome to join the Brazil Weekly networking and discussion group on Linkedin: Click here.

BANKING & FINANCE

Brazil’s first Islamic bond may be a private sale by a company in 2012, Daud Vicary Abdullah, global Islamic finance leader at Deloitte Corporate Advisory Services Sdn. said in Doha (Bloomberg).

A Grupo Odebrecht shareholder is suing over the value of stock that the company plans to buy. The Gradin family, one of the biggest minority investors in the group, filed the suit last month in Brazil’s Bahia state against the controlling Odebrecht family (Bloomberg).

Banco do Brasil SA agreed to buy a small bank based in Florida, Veja magazine said in its Radar column, without naming the lender or saying how it got the information (Bloomberg).

Brazil’s securities regulator proposed stepping up disclosure requirements for the 59 billion reais ($35 billion) asset-backed fund industry in the wake of an accounting probe into Banco Panamericano SA (Bloomberg).

IT

Aptech Brazil Computer Education, a company based in Belo Horizonte (MG), which offers training in IT in a global scale,  wants to open next year, eight new franchises: two in Belo Horizonte (BH), four in São Paulo and two in Rio de Janeiro city (India-Brazil Chamber).

MINING & STEEL

ThyssenKrupp expects Brazil to grant approval for Germany’s biggest steelmaker to operate its new plant in the Latin American country at full capacity (Reuters).

Cia. Siderurgica Nacional SA, Brazil’s third largest steelmaker, said it owns 5 percent of rival Usinas Siderurgicas de Minas Gerais SA, the country’s second biggest steelmaker (Bloomberg).

ArcelorMittal may invest $200 million to produce steel for Brazil’s auto industry (Bloomberg).

OIL

Petrobras has decided to create a holding company as part of its plans to tap massive crude reserves deep beneath the ocean floor (Reuters).

Petrobras  said that its 2010 sales of gasoline and jet fuel jumped from the previous year and will remaan strong in coming months as the country’s economic expansion spurs demand for oil products (Reuters).

OGX, owned by billionaire industrial magnate Eike Batista, said that reserves found in a well in the offshore Santos Basin were not commercially viable (Reuters).

Chevron Corp., the second-largest U.S. oil company, plans to expand its $3 billion Frade project off Brazil’s coast as it bets on finding more crude by drilling deeper wells (Bloomberg).

Petrobras said it has sound finances and the possible acquisition of a stake in Portugal’s largest oil company, Galp EnergiaSA, presents no risk to its debt (Bloomberg).

Chinese companies Cnooc, PetroChina and Sinopec are interested in the Brazilian oil assets of Galp Energia SA, Diario Economico reported (Bloomberg).

RETAIL

Itau Unibanco, Brazil’s biggest non-government bank, agreed to pay 260 million reais ($154 million) to the home appliances unit of Grupo Pao de Acucar for signing up new clients of extended warranty insurance (Reuters).

Arezzo Industria e Comercio SA, Brazil’s largest women’s shoe retailer, said its planned initial public offering could fetch up to 565.8 million reais ($337.2 million) as it looks to fund expansion of new stores and finance takeovers (Reuters).

Brazil’s largest discount retailer Lojas Americanas plans to buy out the shares it doesn’t already own in Internet subsidiary B2W in a deal likely to be worth 1.7 billion reais ($1 billion), the newspaper Valor Economico reported (Reuters).

Advertisements